Rural Connectivity Improvement Project (RRP BAN 47243) Project Administration Manual Project Number: 47243-004 Loan Number: LXXXX September 2018 Bangladesh: Rural Connectivity Improvement Project ABBREVIATIONS ADB – Asian Development Bank CPF – community participation framework CPP – community participation plan DES EMP – environmental management plan EMOP GAP – gender action plan IEE – initial environmental examination LGED – Local Government Engineering Department km kilometer MOLGRDC – Ministry of Local Government Rural Development & Cooperation OCB – open competitive bidding PAM – project administration manual PISC – project implementation support consultant PIU – project implementation unit PMU – project management unit RCIP Rural Connectivity Improvement Project SPS – Safeguard Policy Statement (2009) SSS TRTA – transaction technical assistance CONTENTS I. PROJECT DESCRIPTION 1 II. IMPLEMENTATION PLANS 2 A. Project Readiness Activities 2 B. Overall Project Implementation Plan 3 III. PROJECT MANAGEMENT ARRANGEMENTS 4 A. Project Implementation Organizations: Roles and Responsibilities 4 B. Key Persons Involved in Implementation 5 C. Project Organization Structure 6 IV. COSTS AND FINANCING 8 A. Cost Estimates Preparation and Revisions 8 B. Key Assumptions 9 C. Detailed Cost Estimates by Expenditure Category 9 D. Allocation and Withdrawal of Loan Proceeds 10 E. Detailed Cost Estimates by Financier 11 F. Detailed Cost Estimates by Outputs 12 G. Detailed Cost Estimates by Year 13 H. Contract and Disbursement S-Curve 14 I. Fund Flow Diagram 16 V. FINANCIAL MANAGEMENT 17 A. Financial Management Assessment 17 B. Disbursement 20 C. Accounting 22 D. Auditing and Public Disclosure 22 VI. PROCUREMENT AND CONSULTING SERVICES 23 A. Advance Contracting and Retroactive Financing 23 B. Procurement of Goods, Works, and Consulting Services 24 C. Procurement Plan 26 D. Consultants’ Terms of Reference 26 VII. SAFEGUARDS 26 A. Environment 26 B. Grievance Redress Mechanism 29 C. Involuntary Resettlement and Indigenous Peoples 30 VIII. GENDER AND SOCIAL DIMENSIONS 30 IX. PERFORMANCE MONITORING, EVALUATION, REPORTING, AND COMMUNICATION 34 A. Project Design and Monitoring Framework 34 B. Monitoring 36 C. Evaluation 37 D. Reporting 38 E. Stakeholder Communication Strategy 38 X. ANTICORRUPTION POLICY 39 XI. ACCOUNTABILITY MECHANISM 39 XII. RECORD OF CHANGES TO THE PROJECT ADMINISTRATION MANUAL 40 List of Attachments Attachment A: Procurement Plan 41 Attachment B: Terms of Reference for Consulting Services of Project Implementation Support Consulant (PISC) 56 Attachment C: Outline Terms of Reference for Capacity Development Techncial Assistance for System-Based Road Master Planning 91 Attachment D: Outline Terms of Reference 100 Attachment E: Gender Action Plan Reporting Template 104 Attachment F: Road List for Rural Connectivity Improvement Project 105 Attachment G: Sample Summary Sheet on Bid Evaluation 115 Project Administration Manual Purpose and Process The project administration manual (PAM) describes the essential administrative and management requirements to implement the project on time, within budget, and in accordance with the policies and procedures of the government and Asian Development Bank (ADB). The PAM should include references to all available templates and instructions either through linkages to relevant URLs or directly incorporated in the PAM. The Local Government Engineering Department (LGED) is wholly responsible for the implementation of ADB-financed project, as agreed jointly between the borrower and ADB, and in accordance with the policies and procedures of the government and ADB. ADB staff is responsible for supporting implementation including compliance by LGED of their obligations and responsibilities for project implementation in accordance with ADB’s policies and procedures. At loan negotiations, the borrower and ADB shall agree to the PAM and ensure consistency with the loan agreement. Such agreement shall be reflected in the minutes of the loan negotiations. In the event of any discrepancy or contradiction between the PAM and the loan agreement, the provisions of the loan agreement shall prevail. After ADB Board approval of the project's report and recommendation of the President (RRP), changes in implementation arrangements are subject to agreement and approval pursuant to relevant government and ADB administrative procedures (including the Project Administration Instructions) and upon such approval, they will be subsequently incorporated in the PAM. I. PROJECT DESCRIPTION 1. Rural connectivity is a key component of rural development in Bangladesh. Rural roads contribute significantly to generating increased agricultural incomes and productive employment opportunities, alongside promoting access to economic and social services. Rural roads are the virtual lifelines for the vast multitude residing in rural areas. Bangladesh has a large network of rural roads, many of these roads were constructed in years 1990–2010 on earthen embankments owned by Union Parishads (rural councils) or Zila Parishads (district councils), and they are vital to the crucially important agricultural sector of the country. Since 1995, the government, with the support of the international development community, has continued to expand and improve the rural roads network. During the past decades, rural infrastructure in Bangladesh significantly improved. Despite progress, rural connectivity in Bangladesh remains weak, impeding the physical and economic access. About 40% of the rural population has got access to all-weather roads. Only 28% of the roads are paved and in good or fair condition. 2. The project is aligned with the strategy set out by the Seventh Five-Year Plan (2016– 2020) having the following impact: Connectivity between rural communities, productive agricultural areas, and socioeconomic centers in Bangladesh improved. The project will have the following outcome: transport efficiency and related employment generated in target areas increased. 3. The project will have three outputs: Output 1: Rural road conditions between the selected rural communities, productive agricultural areas, and socioeconomic centers improved. Road conditions of about 1,700 km rural roads between the selected rural communities, productive agricultural areas, and socio-economic centers improved to all-weather standards with safety1 and climate-resilient features2 and maintained for 5 years.3 Output 2: Capacity of rural infrastructure agency and road users in project areas enhanced. This output consists of three subcomponents: (a) Local Government Engineering Department (LGED) trained on road asset management, road safety, contract management, financial management and climate-resilient road design and construction; (b) road users’ awareness enhanced on road safety, human trafficking, and sexually transmitted infection prevention; and (c) women workers’ skills on road construction and maintenance enhanced. Output 3: Rural road master planning enhanced. The rural road master plan will be upgraded for the entire country using geographic information system technology. 1 Road safety measures such as cautionary and information signs, guard posts, speed breakers, and object markers. 2 Adopt climate change resilience design parameters pertaining to pavement, drainage, earthworks, compaction and quality control. This includes slope protection where slope is subjected to water level fluctuations, rigid pavement of reinforced cement concrete is provided at submersible road sections, additional cross drainages, and rigid pavement on sections of roads connecting to cyclone shelters. 3 Five packages in four districts have been selected as pilot contracts with maintenance component. The government will finance the maintenance after the loan closing date. 2 II. IMPLEMENTATION PLANS A. Project Readiness Activities Table 1: Project Readiness Activities 2018 2019 Responsible Indicative Activities May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Agency Advance contracting actions (i) Project Implementation Support Consultant a) CSRN advertisement X X LGED b) Request for Proposals X X X LGED c) Submission of proposal and evaluation X X X LGED, ADB d) Negotiations and award LGED, MOLGRDC, X X CCGP d) Mobilization X LGED (ii) Procurement of 17 civil works packages (OCB, single stage-one envelope) LGED a) Bid advertisement X LGED b) Bid submission and evaluation X X LGED, ADB c) Contract award X X LGED, MOLGRDC Project implementation arrangements LGED Approval of IEE X MOEF X PC, MOLGRDC, Approval of Detailed Project Reports LGED Loan negotiations X ADB, MOF ADB Board approval X ADB Loan signing X ADB, MOF Government legal opinion provided X MOLJPA, MOF Loan effectiveness X ADB/MOF ADB = Asian Development Bank, CSRN = consulting services recruitment notice, IEE = initial environmental examination, LGED = Local Government Engineering Department, MOEF = Ministry of Environment and Forestry, MOF = Ministry of Finance, MOLGRDC = Ministry of Local Government Rural Development & Cooperation, MOLJPA = Ministry of Law, Justice and Parliamentary Affairs, OCB = open competitive bidding, PC = Planning Commission. 3 B. Overall Project Implementation Plan Table 2: Implementation Schedule 2018 2019 2020 2021 2022 2023 2024 Item M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M Output 1: Rural road conditions between the selected rural communities, productive agricultural areas, and socioeconomic centers